Thread by @scoopercooper

The most direct RCMP allegation of corruption surfaces on last day — B.C. casinos ‘used’ foreign high rollers as money-laundering ‘pawns,’ inquiry hears | Globalnews.ca globalnews.ca/news/8277350/b…

In 2012, an RCMP investigation reported that Richmond’s River Rock Casino and New Westminster’s Starlight Casino “are a very significant source of money-laundering activity, using wealthy People’s Republic of China gamblers as willing pawns in their activity.”

The document that makes this explosive allegation — not previously reported on — is the most direct evidence cited in British Columbia’s provincial money-laundering inquiry: that specific B.C. government casinos were “using” foreign high rollers in transnational laundering.

The RCMP believed the River Rock and Starlight were using VIPs, including a man named Li Lin Sha, in money laundering, the report says. Other records filed in the inquiry show that Sha completed at least $59 million in suspicious cash buy-ins from 2010 to 2015.

“There is a great deal of competition between the River Rock and Starlight casinos for Li Lin Sha’s patronage,” the RCMP’s 2012 “Investigational Planning” report says. “Both casinos actually constructed private gambling salons with this individual in mind.”

Indeed. This previous story explains that River Rock VIP manager allegedly tried to cover up a sexual assault on a female employee in the high-limit room, committed by Li Lin Sha. globalnews.ca/news/7632290/c…

Back to this story, and the “whistleblowers.”

Ross Alderson’s lawyer noted BCLC’s board of directors, had actually privately played a videotape of one high roller staggering into a casino with a heavy bag of cash, putting a humourous soundtrack to the person’s suspicious activity.

“The public know that something terrible has happened in B.C., and that there has been a failure of the institutions in this province to protect the public interest,” Alderson’s lawyer said. “The public [has] seen the videotapes of hockey bags of cash coming into these casinos.

“And at the same time, we hear testimony [from other inquiry participants] about robust anti-money laundering going on at the time. But the public is not stupid.”

This 2012 RCMP report seems to contradict the 2018 report of former Mountie Peter German, which found River Rock and other casinos were unwitting of Vancouver Model money laundering. This report says River Rock used PRC high rollers who were also witting pawns of money laundering

“The individuals actually conducting the buy-ins at the casino, and doing the gambling, were wealthy Chinese businessmen, many with little to no ties to Canada,” the RCMP report says.

“These high-roller players typically pay-back their losses via bank-deposits in the People’s Republic of China or Hong Kong, which are ultimately brought back to Canada by the loan-sharks (in non-cash form) as ‘legitimate’ money.”

This isn’t just about drug cash in BC casinos. This is part of a transnational drug bank and publicly traded company loop that uses Hong Kong as a financial hub moving EFTs worldwide @FINTRAC_Canada — more to come on that.

The probe also named Yu Zhao, a high roller who, in 10 days in October 2011, bought in for $1.8 million at the River Rock — the majority in $20 bills. Zhao, who was surveilled meeting with a known loan shark, was 26 years old and listed occupation as CEO of a Chinese milk company

According to bclc report, Li Lin Sha and RR VIP manager Lisa Gao went out drinking in early 2016 and when they returned to the River Rock VIP room Sha sexually assaulted another staff member. Gao made sure that police were not called and Sha continued to gamble after the assault.

Allowed implies the BC govt ultimately and BC casino service providers @CullenInquiryBC The Inquiry looked a bit at whether there was a disconnect between RCMP investigators and RCMP brass and BC senior officials, on the willingness to attack loan shark networks inside casinos.

the vast majority of investigated cash transactions at River Rock Casino. Why? Of interest, Burnaby City Councillor was a concern for tight relationships with River Rock's GM and high-limit players.

Context. Muriel Labine's evidence is in the late '90s loan sharks were coming in with shopping bags of cash, not in the hundreds of thousands. This RCMP 2011 investigation documented $40 million suspect cash in one year. By 2015, in ONE MONTH, July 2015, GPEB id'ed

$13.5 million in 20s at River Rock Casino, and $20 million in cash. This is in the high limit salons purpose built for serving PRC whales like Li Lin Sha.

Fred Pinnock case to go inside and get more funding, before RCMP illegal casino team was defunded by then minister Rich Coleman. Inquiry also heard Muni. of Richmond, scoring a windfall from River Rock, rejected RCMP proposal of casino crime unit.

Interesting notations made onto this regulator briefing note for AG David Eby in August 2017. From a presentation by the Assistant Deputy Minister at the time.

BCLC has banned many, but not top money players mostly (PRC whales) almost often common gangsters banned, including a 'common criminal' found inside the casino with a gun.

@bclc then, and still according to closing arguments of Bill Smart, challenge validity of police findings detailing transnational Vancouver Model drug money laundering in BC casinos. Meanwhile E-Pirate tapes show drug dealers delivering drug cash to BCLC-sanctioned loan sharks.

The new Gaming Policy Enforcement Branch intel unit was focused on sharing information with international intelligence and law enforcement, and as Ross Alderson testified of his own concerns, was concerned about connectivity of transnational organized crime in BC and the CCP.

"org crime presence in BC casinos presents a viable threat to public safety" as of August 2017. Incidentally, shortly after, a River Rock VIP manager allegedly facilitated $200k money laundering transaction for one of Vancouver's big developers, a UF tycoon and banned highroller.

Significant concern with bank drafts, including example of bank draft obtained from vehicle near Richmond Costco, this is where E Pirate surveillance logged many suspicious transactions between drug traffickers and loan shark groups.

@CullenInquiryBC evidence is that as of mid-2017 according to GPEB -- @BCLC and service providers continue to push back on AML for revenue and customer appreciation reasons, including the new Transaction Assessment Team, which is to probe whether ML occurring in evolving ways.

My request, getting at a question of primary importance to @CullenInquiryBC mandate, back in 2020 after some back and forth with BCLC FOI staff --- I wrote:

responsive records mostly redacted. This responsive BCLC email though is very relevant to records in the story- the 2010-2012 RCMP probe of River Rock and Starlight and patrons including Li Lin Sha and the Big Circle Boys loan sharking affiliated networks

record includes Burnaby mayor response to CTV

On my corruption FOI: A Politically Exposed PRC gambler with international gambling history was reported in River Rock, not much detail. Source information was Australia/PRC/Vancouver casino and transaction history

This responsive corruption record although highly redacted connected many of my previous #vanre developer, crowd-funding story subjects, with BCLC casino suspects including a People's Political Consultative Conference tycoon, (UFWD body) and River Rock patron, Mr. Chen.